Vallejo Firefighters, Police and City Employees Propose Plan to Keep City Out of Bankruptcy

Coalition Statement

For Immediate Release
May 12, 2008

Contact:
Phil Giarrizzo
916-737-9325

Chris Norem
916-502-3994

The Vallejo City Council has ignored calls for an independent audit to resolve conflicting financial projections. On top of that, the Council also rejected salary cuts offered by city unions before the bankruptcy vote.

City unions are still calling for an independent financial audit to give taxpayers a clearer picture of city finances. But we are also doing all we can to help the city avoid bankruptcy because it is not a real answer to the city's financial problems. The current crisis stems from a series of bad decisions by previous City Councils, and current city management.

In addition, filing bankruptcy will cost the city millions of dollars in legal fees and higher bond payments. Rather than seeing the City Council march blindly into bankruptcy, we are proposing another rescue plan.

"We've developed a comprehensive plan that provides the city with the funding they need to stay solvent," said Mat Mustard of the Vallejo Police Officers Association. We're doing all we can to help resolve this crisis."

Part of doing all we can means calling for the "best and brightest" to help solve this complicated financial crisis. After the union's call for state assistance, California Controller John Chiang offered to help the city secure funds it is owed, including: SB 90 funds, property tax checks being held by the Controllers office, and helping the City access money from the over-funded insurance accountants.

Police, Fire, and Municipal Employee Unions offer Another Proposal

After the Council rejected the employees' proposal and voted for bankruptcy, we went back to work to come up with additional sacrifices to help the city. Our proposals, which will be considered by the Council on Tuesday, include $10.6 million in salary reductions:

Police officers and firefighters will take a 6.5% salary cut and eliminate another 11% in raises scheduled for 2008 and 2009, and put limits on future raises.
Employees in the general workforce will provide a salary savings of 3% and will forgo an additional 10% in scheduled wage increases over the next two years.

City Cuts More Police Officers, Firefighters and City Employees

The City of Vallejo is also slashing 26 police officer positions, 2 fire engine companies, and 26 city employees, putting the community's safety at risk.

Public Safety As a Percentage of the Overall Budget

The City has been using misleading statistics when they claim that public safety costs are 75% of the general fund budget.

What the City does not explain, is that they have shifted services and other program costs out of the General Fund into special funds or specific service districts, driving up the public safety percentage of the General Fund.

In reality, public safety costs Vallejo $51 million out of a $294 million budget, equaling approximately 17% of total city spending.

This is just one example of how the City's management team distorts the numbers and does not provide taxpayers, or the Council, with an accurate picture of this complex crisis.

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